BILL ANALYSIS AB 552 Page 1 ASSEMBLY THIRD READING AB 552 (Furutani) As Amended June 1, 2009 Majority vote HIGHER EDUCATION 7-0 APPROPRIATIONS 12-5 ------------------------------------------------------------------ |Ayes:|Portantino, Block, Fong, |Ayes:|De Leon, Ammiano, Charles | | |Galgiani, Huber, Ma, | |Calderon, Davis, Fuentes, | | |Ruskin | |Hall, John A. Perez, | | | | |Price, Skinner, Solorio, | | | | |Torlakson, Krekorian | | | | | | |-----+--------------------------+-----+---------------------------| | | |Nays:|Nielsen, Duvall, Harkey, | | | | |Miller, | | | | |Audra Strickland | ------------------------------------------------------------------ SUMMARY : Establishes the Commission on Adequate Funding for Career Technical and Vocational Education at the California Community Colleges (Commission), funded through private funds, comprised of specified members with specified powers and duties. Specifically, this bill : 1)Provides that the Commission shall be composed of nine voting members with three members appointed by the Governor, three members appointed by the Senate Committee on Rules, and three members appointed by the Speaker of the Assembly; and each appointing entity shall include a California Community Colleges (CCC) professor, a CCC administrator, and a representative of a local workforce investment board. 2)Provides that the Commission shall also include ex officio, nonvoting members representing the Legislative Analyst's Office, the Department of Finance, the California Workforce Investment Board, the Office of the Chancellor of the CCC (CCCCO), including the Chair of the Senate Committee on Rules or a member of that committee appointed by that committee, and the Chair of the Assembly Committee on Higher Education or a member of that committee appointed by the Speaker of the Assembly. AB 552 Page 2 3)Provides that the Commission shall elect a chair and vice chair among the members; the term of the chair, vice chair and all members shall be for the duration of the Commission; five members of the Commission shall constitute a quorum at any meeting for transacting business, but a lesser number may conduct hearings; members of the Commission shall serve without compensation but may be reimbursed for travel, subsistence, and other necessary expenses to the extent that funds are available. 4)Provides that state funds shall not be available to the Commission, except that private donations collected may be expended to reimburse members for expenses and other purposes of the Commission and provides that the Commission may not commence duties until the CCC Board of Governors (BOG) has certified that adequate private funds have been obtained for the Commission to complete its duties. 5)Requires the Commission to gather facts and conduct a study regarding financing alternatives for career technical education (CTE), vocational education, and high-cost laboratory programs at the CCC, for the purpose of making recommendations to the Governor and the Legislature in a written report to be submitted within 18 months after the CCC BOG has certified adequate private funds are available to complete the Commission's duties. 6)Provides that the Commission shall hold public meetings and hearings, may authorize a subcommittee to hold hearings, and may request the attendance and testimony of a witness and the production of records, correspondence, and documents that the Commission, any subcommittee of the Commission, or any member of the Commission deems necessary. 7)Provides that, subject to the approval of the Department of Finance, the CCC BOG may solicit, and the Director of Finance may accept on behalf of the Commission, gifts, donations, and other financial support from private entities for the purposes of carrying out the duties of the Commission, and that private entities may deposit gifts, donations, and other financial support with the state for the purposes of this chapter. Provides that the Director of Finance, upon the CCC BOG certifying that adequate private funds are available for the Commission to complete its duties, shall transfer funds AB 552 Page 3 received to the Commission for expenditure for purposes of this bill. FISCAL EFFECT : According to the Assembly Appropriations Committee, one-time costs of about $150,000 for 1.5 positions to staff the Commission and complete the required report and for Commission expenses related to travel and per diem. This bill specifies that the Commission is to be funded from non-state sources. COMMENTS : Background: The state funds community colleges through a funding formula based primarily on an allocation per full-time equivalent student (FTES). This formula, which was simplified by SB 362 (Scott), Chapter 631 of 2006, generally does not differ between general education and CTE courses. The author believes that, while the simplification provides a stable environment for the community colleges to plan and administer programs, it may disadvantage CTE programs, which generally have a higher per-FTES cost due to enrollment limitations and greater facilities, materials, and equipment costs. As a result, the author is concerned that, if community colleges were to make decisions about programs offering based solely on net revenues, they would clearly choose to offer general education courses rather than CTE programs. Purpose of this bill: The author believes a commission of policy experts and practitioners can provide the Legislature with an independent report of options and policy considerations to address the funding of high-cost community college programs. Other states funding mechanisms for CTE: According to information complied by the Education Commission of the States, funding formulas vary from state to state. Some states have separate funding for CTE programs, while others have made no separate provisions. Seven states report enhanced FTES funding for CTE students, including Arizona, which provides up to 1.75 FTES (an additional 75% above a general education student), Kansas, which provides 1.5 FTES, and Florida, which provides 1.3 FTES for each student who completes the CTE program. Analysis Prepared by : Laura Metune / HIGHER ED. / (916) 319-3960 AB 552 Page 4 FN: 0001303